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Andhra Pradesh chief minister N Kiran Kumar Reddy has requested the state-level bankers' committee (SLBC) to adopt a liberal approach in reschedulement of crop loans and sanction of fresh short-term loans to the farmers in all the calamities-affected mandals.
"Though the state received good monsoon this season giving hopes of good harvest, heavy rains and a series of cyclones during September-October 2013 had totally upset the position. The reschedulement of kharif loan disbursals in respect of rabi may be completed by the end of January 2014," he said.
Addressing the 182nd SLBC meeting here on Saturday, Reddy said interest-free crop loans would benefit 10 million farmers in the state.
Stating that Andhra Pradesh was always ahead of other states in extending credit to the priority sector, the chief minister said according to the Centre's directions, all banks should reach the target of 15% within the priority sector lending in providing financial assistance to the minority communities.
Lending to minorities was at Rs 12,124 crore in 2011-12 and Rs 13,583 crore as on September 2013. Lending by banks to the priority sector has declined from 6.75% (2011-12) to 6.40% (2012-13) and further to 6.03% by September 2013. This trend needs to be arrested immediately, he added.
Pointing out that even 50% of the targets under SC/ST financing was not achieved year after year, Reddy said the SLBC might make the issue of lending to SC/ST and minorities a permanent item on the agenda for all steering committee meetings.
On financing the MSME sector and sick units, the chief minister said if banks took up rehabilitation of sick or potentially sick units, his government could provide reliefs relating to power, sales tax dues, interest subsidy etc.
